Question 7 (1 point) Which one of the following is not considered to be a current asset? a) cash b) receivables O inventories d) fixed assets Question 8 (1 point) Which of the following is a use of cash? a) a decrease in inventory b) an increase in accrued liabilities Oc) the sale of an asset for a gain d) a drop in the amount owed on a bond Oe) an increase in stock issued Question 9 (1 point) In breakeven analysis, solving for when EBITDA is equal to zero gives breakeven in terms of: O a) economic revenues Ob) variable costs O survival revenues Od fixed costs Previous Page Next Page Page 3 of 9 Previous Page Next Page Page 4 of 9 Question 10 (1 point) Which of the following is NOT a category on the statement of cash flows? a) cash flow from operating activities Ob) cash flow from equity activities Oc) cash flow from investing activities d) cash flow from financing activities Question 11 (1 point) The reduction in value of a fixed asset over its expected life intended to reflect the usage or wearing out of the asset is called depreciation. a) True Ob) False Question 12 (1 point) How quickly an asset can be converted into cash is called liability. Oa) True b) False Previous Page Next Page Page 4 of 9 Previous Page Next Page Page 5 of 9 Question 13 (1 point) On the balance sheet. Total Liabilities - Total Assets - Owners Equity a) True b) False Question 14 (1 point) During the development stage in a new venture's life cycle, the income statement typically shows no sales but expenses such as rent, utilities, and a subsistence salary for the entrepreneur. a) True Ob) False Question 15 (1 point) Your venture has total assets of $690, net fixed assets of $500, long term debt of $80, and stockholders' equity of $400. What is the amount of your venture's current liabilities? (Hint: construct balance sheet in T table form to see which parts of the information is missing.) Oa) -$100 Ob) $100 Oc) $210 d) $290 Oe) $1,090 Previous Page Next Page Page 5 of 9